A Special Charge Scheme could apply to projects that provide direct or additional benefit to a select group of property owners, such as:

• Undergrounding powerlines
• Constructing or sealing roads, laneways or footpaths
• Easement drainage works

Special Rates and Special Charge Schemes enable councils to support the delivery of projects that provide a direct and special benefit to a select group of property owners. These projects may otherwise not be funded by Council and therefore not be possible.

All residents who receive a direct or special benefit from a project funded through a Special Charge Scheme would be required to pay an apportioned contribution.

Under the draft Policy, for a Special Charge Scheme to progress beyond initial request it must have the support of at least 80% of affected property owners. Exceptions to this include where drainage is required for public health reasons or Council is a significant contributor to the scheme.

If more than 80% of residents in a street or area support a proposal that would be funded through a Special Charge Scheme, the residents who oppose the project would still be required to contribute to the Scheme.

Property owners who may be directly affected by a proposal to be funded through a Special Charge Scheme will be consulted throughout the entire process.

The draft Special Rate and Special Charge Scheme Policy also states that Council will typically only proceed with further investigation if there is support from at least an 80% majority of those who would be liable to pay the Special Rate and/or Special Charge.

The key phases of consultation include:

• Preliminary consultation on the proposal (before it is fully investigated)
• Consultation on detailed scheme preparation
• Formal submissions to a Council committee

If Council declares to levy a special rate or special charge, affected residents can also apply to the Victorian Civil and Administrative Tribunal (VCAT) for review of a Council decision.

The draft Special Rate and Special Charge Scheme Policy sets out Apportionment Principles, as follows:

The calculation of the maximum total levy for a Special Charge Scheme must comply with Section 163(2), (2A) and (2B) of the Act and the Guidelines made by the Minister for Local Government pursuant to Section 163(2C) of the Act.

In addition, the following requirements must also be taken into account:

• For typical new easement drain installation, the full cost of the work is to be charged to property owners. The cost is to be equally shared between the properties on the high side of the drain where the legal point of discharge is to the new drain and properties on the low side that receive protection by the drain. This is consistent with the principle that upper and lower landowners receive equal benefit. The cost is to be based on total area of the properties with consideration being given to all relevant matters, including the natural slope of the land and the resulting flow paths.
• For typical road construction, the full cost of the work is to be charged to all property owners who it is considered will receive a special benefit. The apportionment of costs amongst property owners liable to pay the Special Charge will ordinarily (but not always) be based on a combination of benefit (as to 75%) and area (as to 25%). All properties that enjoy a direct frontage to the road being constructed are to be allocated one (1) benefit unit and properties such as corner properties or others which do not enjoy a direct frontage to the road will ordinarily be allocated half (0.5) a benefit unit. Area will be ‘actual area’, although in some cases Council may consider modified area, which can involve the subdivision potential of the land.
• In the case of other typical schemes to which this policy applies, Council will determine the most reasonable method of distribution of the Special Charge amongst those persons who are liable to pay.

Property owners will be given the opportunity to pay the Special Charge by either lump sum or instalments over a period of time that is specified by Council.

The length of time for paying by instalments will be dependent on the amount of the Special Charge, which typically for drainage schemes is five years and for road construction schemes ten years.

Council will not charge interest to cover administration costs for payment by instalments. However, interest would be charged for late payment, in accordance with the Local Government Act 1989.

Council may offer a discount for prompt payment to provide a benefit for the ratepayer.

Ratepayers experiencing difficult financial circumstances may seek relief in accordance with Council’s Financial Hardship Policy.

As no policy has been in place, Council has not implemented a special charge scheme previously.